Finance Minister Enoch Godongwana outlined reforms to fuel, electricity, transport, water and municipal management on Wednesday during the mini-budget. The goal is to promote economic growth, improve infrastructure and strengthen service delivery. Here are the key announcements.
1. Fuel: Temporary levy relief
The general fuel levy on diesel will be reduced by R3 per litre from 4 November to 1 December 2026 and on petrol by R1.50 per litre. From then until 5 January 2027 the relief drops to R1.50 per litre for diesel and R1 per litre for petrol. The measure is expected to provide relief of roughly R10 billion to households and businesses.
The reduction applies to the levy and does not guarantee that the total pump price will drop by exactly the same amount.
2. Electricity: Wholesale market in 2027
The wholesale electricity market has been launched internally with 32 participants, while Eskom recorded a profit for a second consecutive year. The government is working on an independent transmission system operator and plans to open the market to external participation in 2027. The reforms do not necessarily mean electricity bills will drop immediately.
3. Rail transport and ports: Private participation
Eleven private train operators are expected to start operating on the freight rail network in 2027. The cabinet has also approved the plan to separate the Transnet National Ports Authority (TNPA) as an independent entity. The aim is to make rail and port operations more efficient and reduce logistical bottlenecks.
4. Water: New plan for the water crisis
The National Water Crisis Committee oversees the National Water Action Plan, which focuses on infrastructure, better management and reducing water losses. SANWRIA management has been appointed and a pipeline of water projects valued at more than R60 billion is in the financing phase of implementation according to the treasury. The aim is to make water services more reliable.
5. Municipalities: Financial management
The government wants to combat municipal mismanagement, improve revenue collection and ensure that money from water, electricity and waste services is reinvested in that infrastructure. The Public Services Commission Act was enacted in September to strengthen the commission's oversight and investigation powers.
6. Cities, housing and passenger rail
Passenger rail trips have increased from 17 million in 2021/22 to 101 million in 2025/26 according to the treasury. Prasa aims to reach a total of 232 million passenger trips by 2028/29. The growth is attributed to signal modernisation, new rolling stock and infrastructure work.
7. Visas: Electronic travel approval
The Electronic Travel Approval Programme is operational and has reached 200 000 applications according to the treasury. It enables approval within 24 hours and is part of the government's efforts to modernise travel processes.
8. Local government: Further reforms
The government is working on changes to improve municipal finances, management and service delivery. The revised White Paper on Local Government was to be released during the week according to the announcement. Other reforms, including reviews of municipal financial legislation and water services, are still in the development stage.
What does it mean for South Africans?
The fuel levy relief has a specific timeframe and can temporarily ease pressure on households and businesses. The other reforms focus on better electricity, water, transport and municipal services, but their actual impact will depend on how effectively they are implemented.
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This article is an automatic English translation of a Nuusflits article originally published in Afrikaans. Read the Afrikaans original.
